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FOR IMMEDIATE RELEASE

ICBA Statement on Subprime Lending Guidance Issued by Federal Banking Regulators

Washington, D.C. (June 29, 2007)—Karen Thomas, executive vice president and director of government relations for the Independent Community Bankers of America (ICBA), issued the following statement regarding the subprime lending guidance issued by the federal banking regulators today. The guidance addresses the prudent safety and soundness and consumer protection standards that financial institutions should follow to ensure subprime borrowers obtain loans they can afford to repay.

"The federal banking regulators have taken another important step to address the subprime problem. ICBA is pleased that the guidance is generally focused on subprime lending, rather than all mortgage products. It will help close a gap in existing regulatory guidance that may not have addressed certain subprime lending practices without unnecessarily limiting mortgage choices across the entire mortgage market.

"Generally, community banks do not make the types of mortgage loans discussed in today's guidance. We are heartened that federal banking regulators will use examination and supervisory tools to sharpen their focus on the segment of subprime lending where the problems are occurring."